• by Wayne Friedman , April 7, 2006

A new network-backed research study says it doesn't matter whether viewers have a DVR or not -- they still basically recall prime time broadcast commercials the same way.

In a study sponsored by the four big networks, New York-based researcher Millward Brown says ad recall and ad recognition is virtually the same among DVR and non-DVR owners. This is the latest in a series of recent research pieces coming from the networks that aim to provide hope that the 30-second commercial is not dead - or at least not that bad when exposed to DVR homes.

A key dynamic of the study is something that has been suggested before, says David Poltrack, executive vice president and chief research officer for CBS Corp. and president of CBS Vision, which analyzes emerging technologies and media consumption: "There is [an] amount of attentiveness that is required for fast forwarding, and because many ads run frequently, viewers are generally familiar with those commercials." Millward Brown says DVR users are unlikely to be distracted by activities that consume non-DVR owners.

The study revealed that ad recall and retention was at a 90 index. "It's not a half or a quarter [the recall and retention rate] that was previously thought," said Poltrack. The recall level was consistent across the three categories covered -- Cars, Cell Phones, Fast Food Restaurants --with movie advertising at a slightly higher recall level among DVR owners.

The study findings are backed up by earlier DVR findings -- that DVR owners are heavy TV users and that they tend to be younger. All of which has led to an actual increase of viewership on some shows -- and thus more attention to commercials.

DVR penetration is about 9 percent of U.S. television households, a number that is expected to jump to 18 percent by the end of the year, says Nielsen. Says Poltrack: "Top shows are getting 5 percent more audience. DVRs actually enhance viewership, and now we see there is some commercial value. The debate is -- what is relative value in fast-forward mode versus live mode?"

CBS and Poltrack continue to be adamant that DVR usage be included in some form in the current upfront negotiations.

"While you are playing it back, and fast-forwarding, there is some value," said Poltrack. "We are not going to accept there is no value. It could be some discounted value. I don't think we are going to obtain a specific value prior to the upfront, but we hope to come to agreement in negotiations."

Jo Ann Ross, president of advertising sales for CBS, has said the DVR issue will come down to case-by-case negotiations during the upcoming upfront market, which will start in about six weeks.